Helping You India

New Scheme for Monthly Allowance to the Unemployed & Poor

New Scheme for Monthly Allowance to the Unemployed & Poor

India is a developing country; the exponential rise in unemployment and poverty are some of the major issues of our country. Many schemes and plans have been deployed in the country to uplift the unemployed and the poor. One such scheme under consideration is the ‘Monthly Allowance Scheme’.

New Scheme for Monthly Allowance to the Unemployed & Poor

The Central government in the 2017-18 fiscal budgets on 1st February announced an impressive Universal Basic Income scheme for the unemployed and poor of the country. The government is considering this idea as a means of addressing poverty. It was said that may be announced in the budget on 1st February by Mr. Arun Jaitly, however, this still is in consideration as not many states gave a green signal regarding the scheme.

Because of the huge size of the financial burden on government, such schemes may have implications in terms of delivery and fiscal deficit. The government would take a final decision after a thorough analysis of all the points and consideration and hence are going through the pros and cons of the scheme.

Under the monthly allowance scheme (Universal Basic Income)

Under this scheme, the central government might give financial assistance of Rs.1500 per month to about 200 million poor which will put a burden of 3 Lacs Crore Rupees and other resources.

The target group of the scheme would be the unemployed people with no source of income.

Monthly allowance scheme would be given to the people who are unemployed and finding any job.

This monthly allowance scheme would be only for the poor people of the country who are living Below Poverty Line (BPL).

The idea of putting the money in the hand of women head of the household is also being considered so that the funds and be utilized in a better way.

Points to be considered

The SECC-2011 data and the ‘Jan Dhan’ Accounts may help in identifying the target group for such a scheme as per the policymakers.

Such Universal Basic Income scheme can be helpful in addressing the poverty but immensely difficult and challenge to implement and target the right beneficiary.

Universal Basic Income Schemes have been gaining a lot of publicity across the world.

For example, Finland’s government has recently announced a basic income scheme for anyone seeking employment. UK government also offers jobseeker’s allowance for the unemployed.

Many states in India are already autonomously running such schemes for the poor and unemployed. Haryana government has also recently launched Saksham Yuva Yojana for the educated unemployed youth. Under this scheme, the unemployed postgraduate youth in Haryana will get an allowance of Rs 9,000 every month, as per the announcement of the Chief Minister Manohar Lal Khattar of Haryana.

Such schemes will definitely fight the problems of unemployment and poverty in India. Poverty in the unreachable parts of the country is striking hard. Many households do not even have basic amenities of life. By the deployment of such schemes, India shall, sooner, come up with greater solutions for these people.